Thinking about how you might want to buy online auto insurance? To be a legal driver in the US today you must have proof of insurance, which may also be referred to as proof of financial responsibility in the event of an accident. Depending on the state, you will probably need to either carry liability car insurance or no fault coverage. So if you do plan to buy online auto insurance, you will probably need to consider buying at least one of these two minimum types of coverage.
Here is a quick breakdown:
- Liability Auto Insurance: A type of insurance coverage that covers damage you may cause in the event of an accident. Generally it covers personal property damage or medical bills that are the result of an accident in which you are deemed the at fault driver. Your own expenses will not be covered.
- No fault , PIP or Personal Injury Protection Coverage: Each driver in states that require this must carry his or her own policy, and in the event of an accident each driver is covered by his or her own auto insurance policy, regardless of who is at fault. This helps prevent the need for expensive and time consuming lawsuits, unless someone has expenses that exceed their insurance coverage. This also ensures that an injured driver gets immediate medical coverage instead of having a delay while the insurance details are worked out.
So depending on the state you live in, when you buy online auto insurance you will likely be buying one of these types of policies at the very least. Keep in mind even if you do not live in a state that requires PIP insurance coverage, you may live in one where this is an option drivers may carry.
It is also important to know that if your state requires liability, you will need to make sure you have the right minimum coverage in place to meet the guidelines. Liability breaks down into three areas including personal injury per person per accident, total amount of injury expenses per accident and personal property total per accident. These three amounts tend to vary from state to state. When you do buy online auto insurance make sure you get the correct minimum for your state, although carrying more is a good idea.
Moving Past the Basics
For many drivers the basics are not enough. When you look to buy online auto insurance you may want to have better coverage than the minimum. Of course if you have a financed car, you will be required by the lender to carry more extensive coverage than the state minimum. For most financed cars you must carry collision, comprehensive and sometimes gap insurance as well.
- Collision Insurance: As the name implies this type of policy coverage takes care of collisions, but generally only when the accident involves another vehicle. If you already have collision and think it may cover more than an accident involving another car, it is important to check on this to be sure of what your policy actually covers.
- Comprehensive Car Insurance: This is often what you get when you buy online auto insurance to fill in the holes that simple collision coverage leaves. Comprehensive insurance covers a lot of things including a collision with something other than another car, fire, storm damage, theft or even damage from vandalism. Some polices are more extensive than others so find out if your policy also includes things such as acts of God, natural disasters or other important potential hazards.
- GAP Auto Insurance Coverage: There are several reasons why a driver might need gap insurance for a financed vehicle. The most common reason is to cover the gap between the value of the car and the amount you owe on it. In the event of the car being totaled out or stolen, the standard insurance would pay for the value of the car leaving you to cover the financial difference from your own pocket. GAP insurance pays this difference instead.
The Vast World of Insurance
As you can see, there are many choices available when it comes to buy online auto insurance. In addition to these types of policies you could also be looking for:
as well as a long list of other types. Regardless of what type of car insurance policy coverage you are looking for, you can find great rates online. Additionally you can also purchase your policy online, making it so much easier than the days before the internet. As you shop, however, there are two terms you may come across that you should be familiar with. They are:
- Deductible: This is the amount you are still financially responsible for in the event of filing a claim before the insurance policy provider pays anything. The higher the deductible the lower your premiums. Common average deductible amounts are usually around $500 – $750.
- Premiums: The amount you pay each installment time for your car insurance policy. The most common premium time is monthly, but you will usually save money if you are willing to pay quarterly or annually.
You will also find out about a great many things that can affect your premium rates. Obviously your driving record is the most important and influential factor. Keep in mind, though, the type of car you drive, the distance you drive and even the zip code in which you live can play a major role in the quotes you get back. Of course shopping around for online quotes is also a really important way to help save money as well.
In fact if you are ready to shop online, you can go ahead and get started obtaining your quotes right now. By using nothing more than your zip code, you can have your quotes almost instantly. Before you buy online auto insurance, get the quotes that will save you a lot of money on your policy premiums.